U.S. stock index futures were steady Monday evening following a strong rebound on Wall Street driven by technology stocks, even as uncertainty lingered over whether fresh U.S.-Iran discussions would take place. Market participants are also focused on a key jobs report due Thursday for guidance on the economic outlook and interest-rate expectations ahead of the long Independence Day break.
Futures snapshot
- S&P 500 Futures fell 0.05% to 7,496.50 points by 19:30 ET (23:30 GMT).
- Nasdaq 100 Futures fell 0.04% to 30,040.0 points.
- Dow Jones Futures fell 0.08% to 52,531.0 points.
Those levels followed a robust session on the cash market, where investors also welcomed a Supreme Court ruling that prevented President Donald Trump from firing a Federal Reserve policymaker - a decision that provided some measure of relief to traders weighing policy uncertainty.
Tech rebound and market breadth
Technology stocks led the recovery after heavy declines last week. The Nasdaq Composite rose 2% on Monday, while the S&P 500 advanced 1.2%. Broader risk appetite supported flows into economically sensitive areas as well, helping the Dow Jones Industrial Average to close at a record high.
Alphabet Inc (NASDAQ:GOOGL) made its first trading appearance as a component of the Dow, closing up 4.8% and contributing to the index's strength. Artificial intelligence-related names and semiconductor stocks, which had been sold off amid concerns about lofty valuations and higher interest rates, participated in the rebound.
Geopolitical developments - U.S. and Iran
Markets largely looked past a weekend escalation between the U.S. and Iran after President Donald Trump said Tehran had sought further talks in Qatar this week. However, Iranian state media denied that any meetings with the U.S. were scheduled for the week, leaving the diplomatic picture unclear and keeping investors cautious about the fragility of a tentative peace arrangement.
The U.S. and Iran exchanged strikes over the weekend but agreed to cease hostilities by Monday. Oil prices ticked up slightly on the episode but remained at prewar levels, according to market reports. Earlier in June, a U.S.-Iran memorandum of understanding had supported market sentiment by facilitating increased oil flows through the Strait of Hormuz, a factor that had been welcomed by Wall Street.
That underlying tension has not fully dissipated, especially as Tehran has continued to object to Israeli operations against Hezbollah in southern Lebanon, a point that keeps regional risk front of mind for investors.
What to watch
- Thursday's payrolls report - expected to provide fresh cues on the labor market and interest-rate expectations before the Independence Day holiday.
- Any further clarity or contradiction on prospective U.S.-Iran talks, which could influence oil prices and risk sentiment.
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